Obama’s Speech In Colorado

It’s remarkable what a recent speech by Barack Obama contained. Obama gave a speech in Colorado Springs, Colo. and issued a call for service to our country (here’s the transcript). He said that the 4th of July was a time to reflect not only on your little world, focused on your little issues of putting food on the table, getting an education, “he bustle and busyness of what happens in your own life”, but “in the wider world – a story seen in headlines and websites and televised images; a story experienced only through the price you pay at the pump or the extra screening you pass through at the airport.” Imagine that. You only experience the wider world at the pump or the airport.

This is the divide that separates you from the ability to shape your own destiny

So, if you had no petty interests you could shape your own destiny? What crap!

Then Obama tells his story of subsuming his interests for community involvement and becoming the community.

There is a lesson to be learned from generations who have served – from soldiers and sailors; airmen and Marines; suffragists and freedom riders; teachers and doctors; cops and firefighters. It’s the lesson that in America, each of us is free to seek our own dreams, but we must also serve a common purpose, a higher purpose.

Did you catch the “but” and the word “must”. In other words we must serve a higher purpose; a higher purpose than seeking our own dreams! I’m all for volunteering to serve others, if you choose. I am not inclined to respond very well to those who say I must serve a higher purpose. Who’s to say that your purpose is better than my freely chosen purpose?

That is why I won’t just ask for your vote as a candidate – I will ask for your service and your active citizenship when I am President of the United States.

But we need to ease the burden on our troops, while meeting the challenges of the 21st century. That’s why I will call on a new generation of Americans to join our military, and complete the effort to increase our ground forces by 65,000 soldiers and 27,000 Marines.

Last December, in a similar speech he said:

“We cannot continue to rely only on our military in order to achieve the national security objectives that we’ve set,” he said Wednesday. “We’ve got to have a civilian national security force
that’s just as powerful, just as strong, just as well funded.”

As President, I will expand AmeriCorps to 250,000 slots…

So when I’m President, I will set a goal for all American middle and high school students to perform 50 hours of service a year, and for all college students to perform 100 hours of service a year. This means that by the time you graduate college, you’ll have done 17 weeks of service.

For college students, I have proposed an annual American Opportunity Tax Credit of $4,000. To receive this credit, we’ll require 100 hours of public service.

Many of you worry about America becoming a fascist state. It is one thing to encourage our citizens to join this or that movement and justify it by its higher purpose. It’s another thing altogether to force people to do something. These issues of force don’t arise on the right, where you fear they will. They come from the left, because the left thinks it knows better how you should spend your time. It’s also the left that keeps trying to bring back the draft.

McCain is looking better to me all the time!

Who Knew?

Who knew we traded with a member of “the axis of evil” and that trade is an order of magnitude higher under Bush?

The United States sent Iran $546 million in goods from 2001 through last year, government figures show. It exported roughly $146 million worth last year, compared with $8.3 million in 2001, Bush’s first year in office. Even adjusted for inflation, that is more than a tenfold increase.

Office Depot Disappoints!!!

Oooh! We don’t see charts like Office Depot very often.

Office Depot Inc., the second-largest retailer of office supplies, dropped $3.41 to $7. The company said its margin for earnings before interest and taxes probably narrowed by 2 percentage points more than predicted.

Do FNM And FRE Need More Capital?

Yesterday, Fannie Mae (FNM) dropped dropped $3.04, or 16.2 percent to $15.95 (See chart). Freddie Mac (FRE), fell as much as 29 percent to a 16-year low yesterday (See chart). Bloomberg reports this morning

Record delinquencies on home loans already helped cause financial companies worldwide to write down more than $400 billion on debt holdings and prompted Fannie Mae and Freddie Mac to raise almost $20 billion in new capital. They may need as much as $75 billion more as new accounting rules require them to bring off-balance sheet mortgages on to their books, according to Lehman Brothers Holdings Inc. analysts led by Bruce Harting.
[…]
“Trying to raise $75 billion in the current environment would be very difficult,” said Mark McCarthy, a credit trader at ABN Amro Holding NV in Sydney. “I don’t think investors are going to be as forthcoming about stumping up the cash that we’ve seen in the past.”

If the two are unable to raise the required capital, ultimately, it will be the taxpayers who step and nationalize the two companies.

The Four Strangers

Michelle Malkin notes that

The 2008 update of Merriam-Webster’s Collegiate® Dictionary, Eleventh Edition features a fresh crop of new words and phrases that have successfully become part of the mainstream English language through prolonged and widespread usage in a variety of publications.

One of these new entries, mondegreen (”a word or phrase that results from a mishearing of something said or sung”) has delighted wordplay aficionados for years.

My favorite mondegreen comes from my daughter Erica, when she was in grade school. She was always raving about her favorite TV show, The Four Strangers, at least that’s how it sounded to me. I searched the listings thoroughly, but couldn’t find her show. One day it dawned on me. Her favorite show was The Forest Rangers!

For Indymac, It’s All Over

That’s a sick feeling in the pit of my stomach I’m experiencing. Mike Shedlock points out that on IndyMac’s blog is a letter to shareholders:

…we have been working with our investment bankers to raise additional capital. To-date, we have not been successful with these efforts, and, while we will continue these efforts with our bankers and others, we don’t expect to be able to raise capital…

If you’ve had any financial ups and downs in your life, you know what that means. You need money to pay your bills or meet your margin calls or maintain reserves, etc. and it’s all gone. It’s all gone!

…based on information we have provided to our regulators, they have advised us that we are no longer “well capitalized”, which we stated on May 12 was a possible scenario.

Without an external capital raise, the traditional way to improve safety and soundness is to sell assets and shrink the balance sheet, which in normal times generally has the effect of improving capital ratios and bolstering liquidity. Yet in this environment, where either there are no bids for most of IMB’s mortgage loans and securities or the bid/ask spreads are abnormally wide, “fire-selling” assets would actually deplete capital further.

Indymac (IMB) in 1993 had four employees! Now employment will be reduced from 7200 to 3400 and the severance package that was so generous in the past, “one month of pay and one month of Indymac-paid COBRA insurance coverage for each year of service”, is out the window.

One of the nation’s biggest mortgage lenders, Indymac traded over $45 in Mid 2006, closed today at $0.71! (See chart)

Shedlock writes, “It’s all over.”

Blogs For Borders Video Blogburst

Our weekly vlog — podcast on illegal immigration and border security. In this weeks edition…

Who are the violent ones? The SPLC insists that the Minutemen are a powderkeg of violence, but who is committing political violence?

The Rule of Law? When sanctuary cities go bad!

100% Preventable! Americans continue to pay the bloody price for open borders, when will the madness end?

Download for your ipod here.

Our friend John Monti is facing yet another bogus legal challenge (learn more here) and he could use our support. Make sure to join his Facebook group and hit the tip jar!


Click on image

If you’d like to sponsor a show contact us here.

This has been the Blogs For Borders Video Blogburst. The Blogs For Borders Blogroll is dedicated to American sovereignty, border security and a sane immigration policy. If you’d like to join find out how right here.

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A Look Back At Ken Fisher’s PSR

Sunday’s Oregonian carries an article about “guru” Ken Fisher, author of Super Stocks in 1984, who pioneered the concept of the PSR or “price to sales ratio.” It was a remarkable concept, one this retired stockbroker embraced at the time. I was tired of trying to estimate earnings that were subject to all sorts of machinations. Quality of earnings varied from industry to industry and we couldn’t even rely on audited annual reports. John Reese writes in Forbes in a piece entitled Super Stocks For Ken Fisher Fans

…Fisher found that the sales of what he called “Super Companies”–those that were capable of growing their stock price three to 10 times in value in a period of three to five years–rarely declined significantly. To find these firms, Fisher thus developed the PSR, which compared the total price of a company’s stock to the sales the company generated.

We learn in the Oregonian article by Michelle Roberts that Fisher Investments has purchased 120 acres land in Vancouver for his headquarters in Camas, Washington. The attraction for Fisher is that this area is friendlier to businesses in general and employees in particular.

In the Forbes article Reese, who is founder and CEO of Validea.com and Validea Capital Management, writes

Given my Fisher-based model’s strong outperformance over the past year–and the fact that it now boasts the best long-term returns out of all my Guru Strategies–I thought it would be a good time to take a look at some stocks that it’s currently keen on. To be clear, these stocks haven’t been picked by Fisher, but I believe they do fit the quantitative profile of those “super stocks” that he wrote about in his acclaimed book.

Schnitzer Steel Industries (nasdaq: SCHN)
Marathon Oil (nyse: MRO)
ConocoPhillips (nyse: COP)
TrueBlue (nyse: TBI)
Dress Barn (nasdaq: DBRN)

We’ve had a rough patch in the market lately, so I checked to see how these stocks fared since the March 10, 2008 article in Forbes by Reese:

Company March
PSR
Price
Then
High July
PSR
Current
Price
1 SCHN ,72 $57.51 $118.55 .87 $90.00
MRO .58 $50.35 $55.51 .57 $51.24
2 COP .66 $$77 $$95.96 .76 $91.84
TBI .40 $11.60 $14.65 .39 $12.85
DBRN .58 $11.66 $15.96 .57 $13.42

Fisher had different acceptable PSR ranges for different types of stocks, which Reese’s model reflects;

1. In the case of cyclical “smokestack” companies like Schnitzer, PSRs between 0.4 and 0.8 are indicative of good values. At 0.87, Schnitzer no longer makes the grade.

2. As a noncyclical company, ConocoPhillips needs to have a PSR lower than 0.75 to pass my Fisher-based model; at 0.76, it now just misses the upper limit.

Based on Fisher, Reese’s portfolio of five stocks has performed well and three are still cheap. IMO, ConocoPhillips looks the best technically.

The Problem With Ethanol

Do we really need Ethanol and the politicians who support this boondoggle? From Jennifer Barry at Global Asset Strategist:

In the alternative energy debate, it’s important to question if ethanol is a good idea at all. It lowers fuel efficiency in cars by 30% over the same amount of gasoline. If you are using 10% ethanol gasoline…, it shaves 3% off your mileage even if it doesn’t negatively impact performance. If you switch to E85 fuel, your car will require about 1.5 times as much fuel per mile, and your fuel pump and injectors will have to be larger to allow an adequate amount of energy to reach the engine.

Senator Thune of South Dakota, a major ethanol producing state, claims that ethanol saves the consumer 50 cents per gallon. However, the lower fuel economy overrides that benefit. Ethanol can corrode steel and polymer engine parts that were designed for gasoline, so your repair costs may climb as well. U.S. taxpayers also have to shoulder the cost of ethanol subsidies, so government intervention is hardly free. If the subsidies disappear while mandates remain, the direct cost will jump substantially as well.

Ethanol creates new transportation and safety hassles as well. It can’t be moved via pipeline, so it has to be shipped via ship, truck, or railcar. Transportation opens up opportunities for accidents and fires. Unfortunately, most fire departments lack the training and specialized supplies necessary to meet the unique challenges of ethanol blazes. Ethanol vapor is more flammable than gasoline, and its nearly invisible flame can’t be extinguished with water.

Arctic Seabed Alive With Volcano Action

Scary isn’t it:

Arctic warming has become so dramatic that the North Pole may melt this summer, report scientists studying the effects of climate change in the field.

It’s that (gasp) global warming! Are you positive?


Reconstruction of the Gakkel Ridge beneath the Arctic ocean, where a valley filled with flat-topped volcanos up to 2 km wide and hundreds of metres high has been found.

Credit: Woods Hole Oceanographic Institution

The British journal Nature reports on a alternative explanation:

North Pole- In a series of different expeditions on the Arctic Seafloor, there have been a number of volcano spots located that are actively spewing red-hot lava out of the seafloor.